The following balance sheet was prepared by the accountant for Tippetts Company.

Instructions:
Prepare a corrected classified balance sheet using appropriate accounttitles.

Transcribed Image Text:

Tippetts Company Balance Sheet June 30, 2008 Assets Cash ....$ 32.200 Investment securities Trading (includes long-term investment of $250,000 in stock o Pine Valley Developers) 298,000 605.400 Inventories (net of amount still due suppliers of $75,000) Prepaid expenses (includes a deposit of $15,000 made on inventories to be delivered Property, plant, and equipment (excluding $70,000 of equipment still in use, Goodwill (based on estimate by the president of Tippetts Company). in 18 months) but fully depreciated) Total assets 48,000 240,000 90,000 . $1.313.600 Liabilities and Owners' Equity ..$ 140,000 35,000 55,000 115,000 78,000 42.500 280,000 62,000 20,000 237,500 148.600 $1.313.600 Notes payable ($70.000 due in 2010) Accounts payable (not including amount due to suppliers of inventory -see above Long-term liability under pension plan Retained earnings restricted for building expansion.. Accumulated depreciation Taxes payable Deferred income tax liability Common stock (20,000 shares, $1 par) - .. Additional paid-in capital Unrestricted retained earnings Total liabilities and owners' equity